Other Structures Coverage: 7 Costly Homeowners Insurance Gaps to Avoid

THE BUNDLEBEE BUZZ

Your El Paso Insurance Expert bundlebeeagency.com

A monsoon windstorm knocks down part of your privacy fence. A vehicle damages your iron entry gate. Meanwhile, a fire damages the storage shed behind your house.

Your first question may be simple: does homeowners insurance cover any of it?

Many detached structures can fall under the Other Structures section of a homeowners policy, often called Coverage B.

However, having Coverage B does not automatically mean you have enough coverage to rebuild every structure on your property.

Therefore, homeowners should understand what belongs under Coverage B, what causes of loss may apply, and how much coverage is actually available.

Coverage A Dwelling Coverage Coverage A protects the main house structure. For example, the PDF lists the home’s walls, roof, foundation, attached garage, and permanently attached property under Coverage A. Therefore, damage to an attached garage generally belongs in the dwelling coverage bucket in the guide’s example.

Coverage B Other Structures Coverage Coverage B applies to eligible structures that are separate from the main house. Examples include a detached garage, fence, gate, shed, workshop, carport, pergola, driveway, or sidewalk. Therefore, these structures do not necessarily use the same coverage limit as the house itself.

Page two of the BundleBee guide compares several common structures and loss scenarios.

Structure or Scenario	PDF Example	What to Know
Wood or vinyl fence damaged by wind	Covered	The guide lists wind as a covered cause for other structures.
Wrought iron or ornamental gate hit by vehicle	Covered	The guide lists vehicle impact under Coverage B and notes that the driver’s liability may also be relevant.
Detached storage shed damaged by fire	Covered	The shed falls under Coverage B in the example, while eligible contents use Coverage C.
Detached garage damaged by hail	Covered	The guide lists hail as covered and recommends checking ACV versus RCV.
Carport collapses in windstorm	Covered	A freestanding carport qualifies as another structure in the PDF example.
Fence damaged by rot or termites	Not Covered	The guide identifies this as a maintenance or pest issue.
Fence damaged by flood	Not Covered	The PDF directs homeowners toward separate flood insurance.
Shared fence between neighbors	Depends	Ownership and the cause of damage affect how the loss may be handled.
Shed used for home-based business	Limited	The structure may qualify, while business contents may have different limitations.
In-ground swimming pool	Covered	The guide treats an in-ground pool as a permanent structure and notes that above-ground pools vary by carrier.
Retaining wall damaged by earth movement	Not Covered	The PDF lists earth movement or settling as excluded in this example.
Driveway or sidewalk damaged by vehicle	Covered	The guide lists vehicle impact or fire as examples of covered causes.

The amount of Coverage B is only one part of the equation.

You should also know how the policy values an eligible damaged structure.

Actual Cash Value — ACV ACV can reduce the claim payment for depreciation. Therefore, an older fence or shed may produce a payment that is much lower than today’s replacement cost. The PDF illustrates this with a 10-year-old fence costing $6,000 to replace but producing about $2,500 after depreciation in its ACV example.

Replacement Cost Value — RCV RCV handles replacement without the same depreciation approach, subject to the policy terms and claim requirements. Therefore, knowing whether Coverage B uses ACV or RCV can make a major difference when an older structure is damaged. Check the declarations page and policy language instead of assuming every structure receives replacement cost coverage.

Shared fences can make an insurance claim more complicated because ownership and the cause of the damage matter.

A Storm Damages the Shared Fence

The BundleBee guide explains that when a covered cause such as wind or fire damages a shared fence, each homeowner generally handles their respective portion through their own coverage.

Therefore, one homeowners policy does not necessarily pay for the entire shared fence.

Your Neighbor Causes the Damage

The situation can change if the neighbor causes the damage.

For example, the PDF discusses a neighbor’s vehicle hitting the fence or a fire spreading from the neighbor’s property.

In those situations, the responsible party’s liability coverage may become relevant.

The Fence Simply Rots or Wears Out

Insurance does not turn an old fence into a covered claim simply because two neighbors share it.

The BundleBee guide lists age-related deterioration and rot as maintenance issues rather than covered losses.

Therefore, neither policy may respond when the real problem is ordinary deterioration.

Not under the same coverage bucket in the BundleBee guide.

The physical shed falls under Coverage B, or Other Structures.

Meanwhile, eligible tools, bicycles, lawn equipment, and other personal belongings stored inside fall under Coverage C, or Personal Property.

Therefore, a fire that destroys both the shed and everything inside can involve separate portions of the homeowners policy.

Each coverage can have its own terms, limits, valuation rules, and deductibles.

The BundleBee guide lists wind damage to a wood or vinyl privacy fence as covered under Coverage B in its example.

However, the condition of the fence can still matter.

For example, a fence that was already severely rotted before the windstorm creates a different situation from a well-maintained fence suddenly damaged by wind.

In addition, ACV versus RCV can affect the amount paid for an older fence.

Therefore, document the condition of your fence before a loss and review the valuation terms on your policy.

The BundleBee guide lists vehicle impact to a wrought iron or ornamental gate as covered under its Coverage B example.

However, if the driver is identified and has liability insurance, the driver’s policy may provide another path for the loss.

The PDF’s FAQ notes that filing against an identified driver’s liability coverage may avoid using the homeowner’s own deductible in that scenario.

If the driver is uninsured or leaves the scene, the homeowner may need to look to their own applicable coverage.

Therefore, contact the agency before deciding which claim path makes sense.

The BundleBee guide lists a detached storage shed damaged by fire as covered under Coverage B.

However, remember that the shed and its contents are treated separately in the guide.

The structure uses Coverage B, while eligible belongings inside use Coverage C.

Therefore, document both the structure and the property stored inside it.

The BundleBee guide lists an in-ground swimming pool as a permanent structure under Coverage B.

However, it notes that treatment of above-ground pools can vary by carrier.

Therefore, homeowners with pools should confirm exactly where the pool appears under their policy and what limit applies.

A new detached structure can increase the total value that depends on Coverage B.

The BundleBee guide uses a $15,000 backyard workshop as an example.

The workshop may fall under the existing Coverage B limit. However, that does not mean the existing limit increased when the workshop was built.

Therefore, homeowners should review Coverage B after adding a detached garage, workshop, large shed, custom gate, carport, or other major structure.

In addition, keep photos, receipts, and permit records for the new structure.

1. Add Up Everything on Your Property That Is Not Your House

First, walk around your property and list each detached structure.

Include your fence, gates, sheds, detached garage, carport, pergola, workshop, pool, and other eligible structures.

Next, estimate what each one would cost to replace.

Then compare the combined amount with your actual Coverage B limit.

2. Find Out Whether Coverage B Pays ACV or RCV

Next, review your declarations page and policy language for the valuation method.

If Coverage B uses actual cash value, depreciation can reduce the payment for older structures.

Therefore, knowing the valuation method is especially important for older fences and sheds.

3. Photograph Your Structures Now

Take photos of every fence section, gate, shed, workshop, carport, detached garage, and other major structure.

In addition, note the approximate age, materials, and recent improvements.

Keep contractor receipts when available.

As a result, you will have better documentation of the property’s condition before a loss.

4. Remember That Shed Contents Use Separate Coverage

Coverage B protects the eligible structure itself.

Meanwhile, eligible personal property stored inside generally falls under Coverage C in the BundleBee guide.

Therefore, review both limits if your shed contains expensive tools, bicycles, lawn equipment, or other property.

5. Ask Whether Your Coverage B Limit Can Be Increased

Finally, ask whether your carrier offers a higher Other Structures limit.

The BundleBee guide notes that many carriers may allow the Coverage B amount to increase by endorsement.

Therefore, homeowners with a detached garage, large workshop, expensive iron gate, or several structures should compare the available options before a loss.

What Is Coverage B on Homeowners Insurance?

Coverage B is commonly called Other Structures coverage.

It can apply to eligible structures on the insured property that are separate from the main dwelling, subject to the policy terms.

Does Homeowners Insurance Cover a Fence?

The BundleBee guide places fences under Coverage B.

However, coverage depends on what caused the damage.

For example, the guide lists wind damage as covered while gradual rot and termite damage are not covered.

Does Homeowners Insurance Cover a Shed?

The PDF places a detached storage shed under Coverage B.

For example, it lists fire damage to a detached shed as covered.

However, eligible personal property stored inside the shed falls under Coverage C in the guide.

Does Homeowners Insurance Cover a Detached Garage?

A detached garage can fall under Coverage B.

Meanwhile, an attached garage belongs with the dwelling under Coverage A in the BundleBee guide.

How Much Other Structures Coverage Do I Have?

The PDF uses 10% of Coverage A as its standard example.

For example, $300,000 of Coverage A would produce $30,000 of Coverage B under that example.

However, actual limits vary. Therefore, check your declarations page.

Does Coverage B Cover Wind Damage to a Fence?

The BundleBee guide lists wind damage to a wood or vinyl privacy fence as covered under its example.

However, policy terms, exclusions, deductible, pre-loss condition, and valuation method can affect the claim.

Does Homeowners Insurance Cover a Rotted Fence?

The BundleBee guide lists gradual rot and termite damage as maintenance or pest issues rather than covered losses.

Therefore, ordinary deterioration should not be treated the same as sudden wind damage.

Does Coverage B Cover a Shared Fence?

It can, depending on ownership and the cause of loss.

The PDF explains that each homeowner may handle their respective share after a covered loss.

However, if one neighbor causes the damage, that person’s liability coverage may also become relevant.

Does Coverage B Pay Replacement Cost?

It depends on the policy.

The BundleBee guide warns homeowners to check whether Coverage B uses actual cash value or replacement cost value.

ACV can reduce the payment for depreciation on an older fence or shed.

Can I Increase My Other Structures Coverage?

The BundleBee guide says many carriers may allow homeowners to increase the Coverage B limit by endorsement.

Therefore, homeowners with expensive detached structures should ask what options their carrier offers.

Is a Detached Carport Covered by Homeowners Insurance?

The PDF identifies a freestanding carport as an Other Structure and lists windstorm collapse as covered in its example.

However, the actual policy wording and cause of damage control the claim.

Should I Update My Insurance After Building a New Shed or Workshop?

Yes, it is a good time to review your existing Coverage B amount.

Adding a new structure increases the total property depending on that limit.

Therefore, document the new structure and confirm that your available coverage remains adequate.

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